Stingray Seeks to Sell Stock for C$5.50-C$6.25 in IPO

Stingray Digital Group Inc., a provider of streaming music through television and online, aims to sell shares for C$5.50 to C$6.25 apiece in its Canadian initial public offering.

The Montreal-based company plans to sell 10.2 million to 13.2 million shares while private equity investors Novacap and Telesystem Ltd. aim to sell 8.6 million to 9 million shares in a secondary offering, according to sale documents released Monday. Proceeds from the C$120 million ($99 million) offering will be used to pay down debt.

Stingray Digital offers music TV channels, smartphone apps and an online streaming service for consumers and businesses, according to an April 24 filing with regulators. The company was co-founded in 2007 by Chief Executive Officer Eric Boyko with support from Telesystem and Novacap when it started The Karaoke Channel.

National Bank of Canada, GMP Capital Inc. and Bank of Montreal are leading the banks arranging the Stingray sale. The banks have the option to buy an additional 15 percent of the offering after the deal closes around June 1.

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